Ally Financial (ALLY, Financial) reported impressive first-quarter results, with adjusted revenue reaching $2.07 billion, surpassing the consensus estimate of $1.97 billion. This performance highlights the strength and momentum within its leading franchises, including Dealer Financial Services, Deposits, and Corporate Finance.
The company's retail deposit balances rose by $2.6 billion during the quarter, totaling $146 billion, and notably, 92% of these are insured by the FDIC. Deposits now constitute 89% of Ally's total funding structure, underscoring their critical role in reinforcing the balance sheet.
Further strengthening its financial position, Ally finalized the sale of its credit card business on April 1st. Additionally, the company executed two securities repositioning transactions aimed at minimizing interest rate risk and reducing volatility from accumulated other comprehensive income (AOCI).
CEO Michael Rhodes expressed pride in his team as he marked his first anniversary in the role, reflecting on their commitment to the company’s core values and the excellent customer experiences they provide. Looking ahead, he remains optimistic about the potential opportunities within Ally's primary business areas, anticipating the unlocking of further value.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Ally Financial Inc (ALLY, Financial) is $42.83 with a high estimate of $56.00 and a low estimate of $30.00. The average target implies an upside of 33.10% from the current price of $32.18. More detailed estimate data can be found on the Ally Financial Inc (ALLY) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Ally Financial Inc's (ALLY, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ally Financial Inc (ALLY, Financial) in one year is $34.04, suggesting a upside of 5.78% from the current price of $32.18. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ally Financial Inc (ALLY) Summary page.
